Pubs will not be well served if future reductions in energy costs are driven by recession.
Current market conditions
Continuing uncertainty over global trade and recession is weighing down markets, including energy.
With ever-higher tariffs threatened between the world’s two largest economies. Recession in the US and China would have global repercussions.
Cost outlook
Warmer weather has reduced gas for heat demand, and supplies are good. Europe and the UK have reserves of 36 & 27% respectively.
The long-term outlook for energy prices is for lower costs. However, the market remains volatile and in the short term, prices may rise by a higher margin than they will fall.
Current energy costs
The marked reduction in commodity costs has not led to a significant shift in contract rates on offer to pubs. Only larger businesses with flexible purchase contracts can currently benefit from lower commodity costs.
| Commodity cost | Average unit rate | Average S/C | ||
|---|---|---|---|---|
| Electricity | 24/01/2025 | 9.4p | 24.6p | £1.50 |
| 24/02/2025 | 8.7p | 24.6p | £1.81 | |
| 15/04/2025 | 7.8p | 24p | £1.58 | |
| Gas | 24/01/2025 | 4.1p | 6.9p | 99p |
| 24/02/2025 | 3.7p | 7.1p | £2.50 | |
| 15/04/2025 | 3p | 6.5p | £2.10 |
Wider Market Concerns
Suppliers are moving more quickly to disconnect pubs, even when attempting to reach an agreement with their supplier. They are also occurring when customers may not have been properly notified, or when the supplier has been notified of a change of tenancy. The suppliers who are quickest to disconnect are often the slowest to reconnect, seemingly content to leave customers without power for weeks.
Understandably, pubs are keen to secure the best possible rates. However, some of the most competitive prices come from suppliers who are quickest to disconnect and offer poor customer service. Failings that are not adequately compensated for by a slightly better price than suppliers with much better service.
How Nationwide Energy Can Help
Making informed decisions in a challenging market requires comprehensive advice. Nationwide Energy’s field and office teams offer detailed consultations to help businesses:-
- Consider offers from different suppliers and different contract lengths.
- Understand the merits and risks of various supply options.
- Evaluate contract terms to avoid hidden costs.
- Access the latest market insights for informed decision-making.
Providing customers with the time and information they need to choose the best energy solutions for their business.
Contact us Today
📞 Tel: 02476 328995
📧 Email: info@nationwide-energy.co.uk
🌐 Website: Nationwide Energy Free Guides